Anonymous Posted June 9, 2003 Report Share Posted June 9, 2003 I see that some people have posted their scores - what is a desirable # and if you remove all the negative items, does the score jump up or go back up incrementally? Does anybody know how points are gained or lost? I know it's a combined # based on the information but I'd like to have some idea of what my score may be if certain things are removed. Link to comment Share on other sites More sharing options...
sisflomi Posted June 9, 2003 Report Share Posted June 9, 2003 Hello newbie and welcome. Its hard to really say what will happen with each persons numbers. I would recommend that you go to this link and read up on FICO scores. It has a lot of good info and you can download a book about scores for free. www.myfico.com Link to comment Share on other sites More sharing options...
kimber6337 Posted June 9, 2003 Report Share Posted June 9, 2003 Desirable....620 and up will land you a sweet mort. deal right now. Everyone's "goal" it appears is to reach the "700 Club". But of course we all desire perfection! LOL Link to comment Share on other sites More sharing options...
miwankiw Posted June 9, 2003 Report Share Posted June 9, 2003 there is a ton of threads on this, so I'll try to help you out with a short summary...Anything negative always have an adverse impact on scores. If you can remove the negative item without removing the account, then you will normally get a positive reaction. I would say always, but since no one really knows the scoring process, there is always a possibility of it backfiring...For example, if you have lates only, then you only want to remove that.. not the account. Another big point is the longevity of the tradeline... try to keep older tradelines, since your credit history is a factor. If you have older tradelines, it shows you've been able to maintain good credit for a long time. In looking at the CRA's over 10 years is pretty good...Balances.... try to keep your card balances around 25-35% of their limit. Paying down your cards helps alot. I once was around 640... then I literally paid down to 10% of my limits, and I hit 696.. so it was a nice 56 point jump...Don't miss any payments - as time goes on, the account's value gets less.There is so much out there and there are definitely more people that can speak more to it, but that's a taste...Best advice, don't concentrate too much on your score. My Equifax has no negatives and it's at 715...the rest seems like balance issue.. get rid of the negative line items.. Mark Link to comment Share on other sites More sharing options...
Anonymous Posted June 10, 2003 Author Report Share Posted June 10, 2003 I somehow managed to post this on a ton of topics - so sorry - where can I find an address for privacy guard? Will this show accounts that are in dispute? Link to comment Share on other sites More sharing options...
morrow Posted June 10, 2003 Report Share Posted June 10, 2003 <blockquote>Originally posted by newbieI somehow managed to post this on a ton of topics - so sorry - where can I find an address for privacy guard? Will this show accounts that are in dispute?</blockquote>privacyguard.com and I believe it only shows EQ disputes, unless anyone tells you otherwise. Link to comment Share on other sites More sharing options...
tarheel99 Posted June 10, 2003 Report Share Posted June 10, 2003 <blockquote>Originally posted by morrow<blockquote>Originally posted by newbieI believe it only shows EQ disputes, unless anyone tells you otherwise. </blockquote>I guess that would explain why I haven't seen any change in my TU & EX listings on PG when EQ has shown them in dispute for over a week now. Link to comment Share on other sites More sharing options...
SpoonyNix Posted June 10, 2003 Report Share Posted June 10, 2003 newbie,I'd agree with the above. 620 will get you a decent home loan and a bunch of credit cards. 700 is what many of us are shooting for. Link to comment Share on other sites More sharing options...
laura66 Posted June 10, 2003 Report Share Posted June 10, 2003 620 will most likely get you into a home, but I don't think it will get you the BEST rates, though. Link to comment Share on other sites More sharing options...
utman17 Posted June 10, 2003 Report Share Posted June 10, 2003 FICO Score Interest Rate 720 - 850 5.169% 700 - 719 5.294% 675 - 699 5.832% 620 - 674 6.982% 560 - 619 8.531% 500 - 559 9.289 Link to comment Share on other sites More sharing options...
Anonymous Posted June 10, 2003 Author Report Share Posted June 10, 2003 <blockquote>Originally posted by utman17FICO Score Interest Rate 720 - 850 5.169% 700 - 719 5.294% 675 - 699 5.832% 620 - 674 6.982% 560 - 619 8.531% 500 - 559 9.289 </blockquote>keep in mind.. these rate are "fixed"if your looking for a home.. do a 5/1 ARM which will lock you into a rate of about 5.5(interest only) at 620, by the time the 5 years are up, reficourse, assuming Greenspan doesnt crank up the rates Link to comment Share on other sites More sharing options...
Anonymous Posted June 10, 2003 Author Report Share Posted June 10, 2003 Thanks - all great information!!! The Adjustable Rate will only go up if the rates go up more than a point, right? Link to comment Share on other sites More sharing options...
edubb007 Posted June 10, 2003 Report Share Posted June 10, 2003 Good call Eddie! Link to comment Share on other sites More sharing options...
Anonymous Posted June 10, 2003 Author Report Share Posted June 10, 2003 <blockquote>Originally posted by newbieThanks - all great information!!! The Adjustable Rate will only go up if the rates go up more than a point, right?</blockquote>5/1 means the rate is locked for 5 years, and adjusts every year after the 5 years..hence the 1 you see... I had a middle credit score of 621 and just closed on a 300k loan, had to put down 20% at 5.37 my payments will be very low as opposed to a fixed rate and Ill be able to attack the principle when it best fits me.. its a solid planif your up there in the high 600's it could be in the 4'sIm only do this to get in now why the rates are low and if i cant remove my last 2 OC's they will fall off within a 1 1/2, i will have completed my rehab for my SL's so my credit will be perfect with the 5 positive TLSIf your looking to buy a home.. nows the time to jump.. [Edit by EddieTampa on Tuesday, June 10, 2003 @ 09:27 AM] Link to comment Share on other sites More sharing options...
Anonymous Posted June 10, 2003 Author Report Share Posted June 10, 2003 here is my question eddie. i have a 620 and i should stay around there for a while until i establish credit (after i bump these three measily collections)my other half seems to think that he can buy now with his bad bad bad credit and refinance when he has better credit... does 'fixed' mean that you cannot refi until a certain time? i am not all that familiar with anything finance related and i know that you have said you majored in it, so come on, sugar, flex. Link to comment Share on other sites More sharing options...
laura66 Posted June 10, 2003 Report Share Posted June 10, 2003 "Fixed" refers to a fixed interest rate; it never changes. ARM stands for "adjustable rate mortgage" that is subject to change according to interest rate fluctuations (and changes at set intervals based on your loan.) A prepayment penalty doesn't prevent you from refinancing or selling, but rather PENALIZES you for doing so. A typical prepayment penalty is for a period of 3 years and is equivalent to six months' worth of interest (if you prepay more than 20% of the loan balance.) And be careful: Alot of times, shady brokers will slip these in, and you don't find out until you're sitting in the escrow office! Link to comment Share on other sites More sharing options...
Anonymous Posted June 10, 2003 Author Report Share Posted June 10, 2003 <blockquote>Originally posted by Idon'tpayhere is my question eddie. i have a 620 and i should stay around there for a while until i establish credit (after i bump these three measily collections)my other half seems to think that he can buy now with his bad bad bad credit and refinance when he has better credit... does 'fixed' mean that you cannot refi until a certain time? i am not all that familiar with anything finance related and i know that you have said you majored in it, so come on, sugar, flex.</blockquote>fixed just means the rate is "locked" in, 10,15,20,30 etcto secure a fixed rate they are higher than a Adjustable rate.. sorta like a life insurance policy.. you can get 250k life policy for 10 years that will be cheaper per month than say getting that same 250k locked in for 30 yearsIve seen some mortgage co's even give loans to people in the 550-575key is putting down a nice chunkfor anybody that has bad credit an ARM is a good choice because it is lower than a fixed rate that should offset the monthly costs compared to someone with great credit that has a "fixed" loanFixed is the safest way, however..For someone with poor credit you could get in and pay interest only and most people's credit should be repaired within 5 years, so then just refinancekeep this in mind, if you go to a sub-lender broker they charge you anywhere from 3-5% just to find you a lender.. ontop of the interest on the actual loan, some sub-lender brokers will allow you to add that charge to your monthly payment, but if you refinance with another company, keep in mind you still have to pay the sub-lenders feeYou can refinance anytime you want Link to comment Share on other sites More sharing options...
laura66 Posted June 10, 2003 Report Share Posted June 10, 2003 Also, IDONTPAY, how bad is hubby's credit? He's probably right, and you can buy now and refi later. Even the HIGH interest rates now are better than the BEST interest rates in leaner times... Like someone said in an earlier post, the 5/1 ARM's are pretty good options now, especially if you think you might want to move up to yet another home within that 5 year timespan. Link to comment Share on other sites More sharing options...
Anonymous Posted June 10, 2003 Author Report Share Posted June 10, 2003 so basically, it's smartest to wait until your credit is good enough for the interest you want before buy in the first place? so why do people refinance in the first place? do they feel that the penalty is not a big deal compared to the rate changed based on new credit info or whatever? thanks laura, you are precious (sorry that is my new word). Link to comment Share on other sites More sharing options...
Anonymous Posted June 10, 2003 Author Report Share Posted June 10, 2003 <blockquote>Originally posted by Idon'tpayso basically, it's smartest to wait until your credit is good enough for the interest you want before buy in the first place? so why do people refinance in the first place? do they feel that the penalty is not a big deal compared to the rate changed based on new credit info or whatever? thanks laura, you are precious (sorry that is my new word).</blockquote>You may want to look into a "new construction" homethis will buy you 6-8 months.. most require just 5% down to start building, that should give you time to have alot of stuff cleared up on your CRHeres a tipdrive around your neighborhood and look for new communities going upmake sure no houses have started up yeat, if you see the stakes and paved road.. thats a gold minemost developers will give the first 5 buyers 50% off on all premiums for lotsonce your house goes up, and by the time the model home is up and construction starts, your house will have gone up 20% before you even move in. Link to comment Share on other sites More sharing options...
laura66 Posted June 10, 2003 Report Share Posted June 10, 2003 <blockquote>so basically, it's smartest to wait until your credit is good enough for the interest you want before buy in the first place? <blockquote>Not at all. There's alot of other reasons to buy a home, probably with tax benefits at the TOP of the list. Don't forget, you get to write off all of that interest! By the way, the prepayment penalty is also characterized as interest, so you can write that off on your taxes, as well. I verified that with my accountant! Link to comment Share on other sites More sharing options...
laura66 Posted June 10, 2003 Report Share Posted June 10, 2003 (oops, someone needs to tell me how to "quote!" Link to comment Share on other sites More sharing options...
kb9tbq Posted June 10, 2003 Report Share Posted June 10, 2003 [ QUOTE ] then on the back half type[ / QUOTE ]but all spaced together. Link to comment Share on other sites More sharing options...
Anonymous Posted June 10, 2003 Author Report Share Posted June 10, 2003 If you do get a fixed loan sometime down the road and its @ 5.5 or lowerfor God sakes dont pay extra on the house every month, your moneys worth more to you in your pocket or some other investment vehicle like Roth/IRA (depending on what your futute earnings are expected) Link to comment Share on other sites More sharing options...
laura66 Posted June 10, 2003 Report Share Posted June 10, 2003 <blockquote>(oops, someone needs to tell me how to "quote!"</blockquote>Just testing...Thanks, KB Link to comment Share on other sites More sharing options...
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